Mergers And Aquisitions Fuel Evercore Profit, Sales

Evercore Partners (EVR) isn't a widely known name in the investment banking space, but it could be soon. The business is dominated by names like Goldman Sachs (GS) and JPMorgan Chase (JPM), but Evercore is quickly making a name for itself.

A strong stock market, cheap money and solid balance sheets in corporate America are usually the recipe for heightened merger activity, but that hasn't been the case so far this year, according to recent data from Thomson Reuters. In the first quarter, the total number of deals announced worldwide was 8,115, the lowest level since 2003. But in the U.S., the value of deals announced soared 89% from a year ago to $269.8 billion.

In April, Evercore reported strong first-quarter results and announced a quarterly dividend of 22 cents a share. Profit jumped 270% to 37 cents a share while sales grew 45% to $153.4 million. In the first quarter, Evercore was involved in 37 deals worth a combined $45.8 billion.

Even more compelling is future growth prospects. Full-year profit in 2013 is seen rising 16% from 2012 to $2.07 a share. Growth is forecast to accelerate in 2014, rising 26% to $2.61 a share.

Evercore has been consolidating gains since March. It's working on the right side of a possible second-stage base, but it's not showing much in the way of accumulation.

Signs of institutional buying, or above-average volume price gains, would improve its technical health but it's not happening yet.

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